Forms of Doing Business

Blended learning

Forms of Doing Business

1. What is the common meaning of Business?

2. What is a ‘Form of Business?

3. Why do you need a ‘Form’ for business?

4. What are the different forms of business?

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 Blended learning

Introducing 4 Basic Forms of Doing Business

Sole Prop Partnership Private Company Public Company

Non- Company Company

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Identifying the Form of Doing Business
Sole Prop Partnership Private Public
Company Company

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Case: 4Aces
Case: 4Aces
 Amar, Akbar, Anthony and Amarpreet were four school time friends. After passing from
school, the four met with each other and were discussing about their future plans. All four
were sure that they would take up to doing business after finishing their graduation.

 Amar was very ambitious and always thought of growing fast and managing a large empire
of business. He was contemplating the setting up of chain of schools across the country
with a non-franchising model.

 Akbar never believed in such large dreams and had always believed in being self-reliant.
He was planning to start a paint manufacturing plant.

 Anthony always believed in being a team member. He was planning to start an event
management firm.

 Amarpreet being a doctor by profession believed in serving the people and hence planned
to run his own hospital with the help of his professional group of friends.

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Discussion points

1. Suggest the type of business entity that would fit the profile
of each individual. Give your reasons.

2. In the above case, should the type of business being taken

up, influence the type of business entity? Discuss.

3. What other factors do you think are essential while deciding

on the type of business entity?

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Different Forms of Doing Business

Sole Prop Partnership Private Company Public Company

No. of members

Availability of Capital

Regulations applicable

Banker’s risk

Agency problem
(Owner vs Mgr)

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LLP One Man
Company
Best of the
two worlds

HUF Trust